Managers 'must address disillusionment over remuneration'

Growing disillusionment over the correlation between performance and pay is becoming a key concern for management staff to address, according to a new report.

The Chartered Institute of Personnel and Development (CIPD) has conducted a survey showing that workers who have seen their pay rates frozen or cut in recent months are losing faith that their hard work is being valued and rewarded.

Only 19 per cent of staff members who have received a pay rise said they believed it was due to their performance, with the majority recognising that salaries are being governed primarily by wider economic factors.

Charles Cotton, rewards adviser for the CIPD, said it is vital that employers work hard to communicate what aspects of performance are valued by the management, as well as how this will be rewarded.

"If not, levels of motivation and productivity could fall, perpetuating a vicious circle that could hold back both organisational performance and wider hopes of economic recovery," he noted.

This follows a CIPD report last month which suggested that the stress and insecurity caused by the recession has made employee engagement more vital than ever.

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